The case has now gotten to a very embarrassing position against the SEC according to a crypto YouTuber and founder of BitBoyCrypto.com Ben Armstrong, who also echoed many other people that the case has totally exposed fraud within the SEC.
Several other experts in and out of the crypto industry hold similar views. The charges against XRP has been ongoing and is likely to move to trial from next year since the filings and hearings on motions for summary judgment will extend to December.
Most of those malpractices by SEC were exposed after the commission released emails relating to the XRP case following directions by the court. Empower Oversight, a non-profit whistleblower, had also published the emails before SEC released them. Instead of accepting the charges and negotiating for fines as other projects did, Ripple chose defense.
According to the released emails, former SEC director William Hinman at the time the decision was made and who voted for the decision, had a conflict of interest when he decided to file a case against XRP.
Hinman was also working for Simpson Thatcher law firm that was part of the Enterprise Ethereum Alliance at the time the decision was made.
The former director also said in 2018 that Bitcoin and Ethereum were not securities assets and caused them to pump. He had met Ethereum co-founders and investors before this announcement. The director also allegedly defied SEC’s ethics team warning about re-engaging with the law firm.
Besides, he received a $1.6 million per year pension from the law firm at the time he was SEC director and when he ruled that Bitcoin and Ethereum weren’t securities. SEC did not charge Hinman.
The commission filed a case against Ripple and two of its executives for raising over $1.3 billion through the 2013 ICO by selling an unregistered securities asset known as XRP to finance business. It claimed that its founders and operatives sold the asset as an investment in the promise of returns. XRP has denied and countered those claims.
Ripple is relying on those emails to show that the officials not only disagreed on the matter but that the discussions and decision to file the case against XRP undermined SEC’s position. While they might not directly affect the case, they have raised questions about the credibility of SEC. Ripple said that by acting so, SEC acted to unfavorably choose winners and losers.
Ripple has also previously accused the Securities Exchange Commission of “bullying and delaying” the case to not only deny justice but also “keep this cloud of uncertainty over the market.” The company argued that the case demonstrates SEC’s ‘regulation-by-enforcement’ approach towards crypto.